Bitcoin Surges 15% to $85,000, Faces Key Resistance

Bitcoin's price has recently surged, briefly reaching $85,000 on April 1. This increase was driven by strong accumulation from long-term holders and whales, as well as growing institutional interest. Despite global volatility, including uncertainty surrounding tariff plans, Bitcoin has managed to stay range-bound between $75,000 and $85,000. However, the price pulled back to around $76,000 by April 8 due to the uncertainty.

The $85,000 psychological level is seen as a key resistance for Bitcoin. If the price can break out and close above this level, it could target $88,000 and then $90,000. However, if the price fails to break out and instead drops below $80,000, a correction could unfold toward $76,500 or even $74,000. This would present a re-entry opportunity for long-term bulls.

The current price action is forming a high-tight flag, which is often a continuation signal after an uptrend. This suggests that the bull run is still on, despite the recent downtrend. The Bitcoin price has formed a series of higher highs and higher lows, respecting a steep ascending trendline since early February. However, it is now coiling near the highs, forming a tight range between $80,000 and $83,500.

The immediate resistance is the range between $83,000 and $85,000, as this area has repeatedly capped prices in recent sessions. A daily close above this zone could trigger the next leg higher. The range between $90,000 and $92,000 is another key resistance zone to watch out for. The key support zones are $80,000, $76,500, and the range between $72,000 and $74,000. This range is the major support and ideal retest level if the Bitcoin price corrects, as this is the level where many sidelined bulls are likely waiting to buy in.

The recent price action suggests that Bitcoin is still in a strong bullish trend. However, traders must prepare for a major breakout and breakdown in the coming days. The potential drop to $74,000 is still healthy in the broader trend, and the market is cooling off and not crashing. The Bitcoin price is currently consolidating just below the psychological $85,000 level after a historical bull run which pushed it to new all-time highs.